Colombian virtual restaurant startup Foodology raises $50 million in equity and debt

Foodology, a Colombian startup that operates dark kitchens has announced the close of a $50 million funding round with $20 million in equity and $30 million in debt.

Last year, the startup raised $15 million in a Series A round led by a16z and Base Partners. This time, previous investors such as a16z, Wollef, and Kayyak Ventures, and new investors, such as Chimera, an Abu Dhabi-based VC, participated in the equity financing. While TriplePoint Capital, a Californian VC focused on startup loans provided the debt funding.

Dark kitchens (also known as ghost or cloud kitchens) are restaurants oriented exclusively to delivery which, by not serving the public, economize by occupying cheaper facilities. This business model grew in popularity during the pandemic as a lot of restaurant businesses were impacted.

Foodology presents itself as a fast way for companies to develop and scale virtual restaurants under their own brands or third-party brands. According to the company’s figures, it already has more than 80 virtual kitchens operating in Colombia, Mexico, Brazil, and Peru, delivering more than 200,000 orders per month.

With the new funds, the company plans to reach 100 kitchens by the end of the year and establish itself as a leader in Brazil, a position it claims to have in Colombia and Mexico. The startup says it will enter into the Brazilian market through strategic M&A opportunities.